Princess Cruises doubles agents basic commission
Princess Cruises has reversed its decision taken two years ago to halve travel agents’ headline commission to 5%, confirming that from this month agents will receive a basic 10% on sales of 2014 cruises.
UK director Paul Ludlow said the move was in response to feedback from agents, who were forced to accept a cut from 10% to 5% in 2011.
However, other Complete Cruise Solution brands P&O and Cunard, which joined Princess in reducing their headline commission rates to 5% two years ago in an attempt to end agency discounting, will stick with their existing commission levels for 2014.
Princess Cruises said its new 10% upfront commission payments would replace a more complicated structure of top-up payments to agents for selling flights and booking groups, where were paid on a quarterly basis. The cruise line said it was responding to requests from agents for a simplified, upfront payment structure.
In a statement, it said: "Princess Cruises has an exciting year ahead with the arrival of Royal Princess in June, and this anticipation will roll over to 2014 when Regal Princess will be welcomed into the fleet.
"During this time Princess Cruises is looking to continue building successful relationships with travel agent partners and to see consistent growth within the UK cruise market."
It said it had been working with travel agent partners to "ensure that a clear, simple and effective remuneration programme is offered to support ongoing growth in the UK market".
It said the new, simplified system would make it easier for agents to see the earning opportunities available to them and allow commission payments to be made earlier.
The 10% base rate replaces the air and groups commission earning opportunities from March 14 to coincide with the 2014 Mediterranean and Scandinavian programme going on sale.
Princess Cruises is in the process of contacting travel agent partners to communicate these new commercial terms.
Ludlow said: "Princess has already received a fantastic response from our agents. We look forward to continuing a successful relationship with our existing agents and welcoming new partners to the Princess brand in what is a very exciting couple of years for us, with the introduction of Royal Princess in June and welcoming Regal Princess in 2014".
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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